a) Moon uses a perpetual inventory system. On day 1, it purchased merchandise inventory on account from Aurora for $50,000 terms 2/10, n/30. On day 3, Moon received credit from Aurora for $5,000 of merchandise that Moon returned. On day 6, Moon paid Aurora the amount owing, net of any returns and discount. Show calculations. Date Debit account Credit account Debit $ Credits a) day 1 a) day 3 a) day 6 b) On day 8 Moon had credit sales of $60,000. Moon uses a perpetual inventory system and cost of goods sold was $42,000 (70% of sales). Estimated sales returns are 10% of sales. On day 12, Moon recorded the necessary entries for a sales return of $4,000 related to the initial credit sale of $60,000 above. Moon uses IFRS. Date Debit account Credit account Debit 5 Credits b) day 8 b) day 12
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